KKR REAL ESTATE FINANCE TRUS (KREF) Stock Fundamental Analysis
NYSE:KREF - US48251K1007 - REIT
9.46 USD
-0.07 (-0.73%)
9.5 USD
+0.04 (+0.42%)
KREF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. KREF may be in some trouble as it scores bad on both profitability and health. KREF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KREF had positive earnings in the past year.
KREF had a positive operating cash flow in the past year.
Of the past 5 years KREF 4 years were profitable.
In the past 5 years KREF always reported a positive cash flow from operatings.
1.2 Ratios
KREF has a worse Return On Assets (-0.66%) than 73.13% of its industry peers.
KREF's Return On Equity of -3.58% is on the low side compared to the rest of the industry. KREF is outperformed by 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -3.58% | ||
| ROIC | N/A |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of KREF has declined.
In the last couple of years the Operating Margin of KREF has declined.
KREF's Gross Margin of 30.70% is fine compared to the rest of the industry. KREF outperforms 61.19% of its industry peers.
In the last couple of years the Gross Margin of KREF has declined.
KREF does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.7% |
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
KREF does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for KREF has been reduced compared to 1 year ago.
The number of shares outstanding for KREF has been increased compared to 5 years ago.
The debt/assets ratio for KREF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.02, we must say that KREF is in the distress zone and has some risk of bankruptcy.
KREF has a Altman-Z score (-0.02) which is in line with its industry peers.
The Debt to FCF ratio of KREF is 48.47, which is on the high side as it means it would take KREF, 48.47 years of fcf income to pay off all of its debts.
KREF has a Debt to FCF ratio of 48.47. This is in the better half of the industry: KREF outperforms 71.64% of its industry peers.
A Debt/Equity ratio of 3.90 is on the high side and indicates that KREF has dependencies on debt financing.
With a Debt to Equity ratio value of 3.90, KREF perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 48.47 | ||
| Altman-Z | -0.02 |
ROIC/WACCN/A
WACC6.78%
2.3 Liquidity
KREF has a Current Ratio of 0.66. This is a bad value and indicates that KREF is not financially healthy enough and could expect problems in meeting its short term obligations.
KREF's Current ratio of 0.66 is fine compared to the rest of the industry. KREF outperforms 65.67% of its industry peers.
KREF has a Quick Ratio of 0.66. This is a bad value and indicates that KREF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.66, KREF is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
KREF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 128.46%, which is quite impressive.
The earnings per share for KREF have been decreasing by -34.56% on average. This is quite bad
The Revenue for KREF has decreased by -21.32% in the past year. This is quite bad
The Revenue has been growing by 16.21% on average over the past years. This is quite good.
EPS 1Y (TTM)128.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%97.45%
Revenue 1Y (TTM)-21.32%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-25.38%
3.2 Future
Based on estimates for the next years, KREF will show a very strong growth in Earnings Per Share. The EPS will grow by 44.23% on average per year.
KREF is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.84% yearly.
EPS Next Y152%
EPS Next 2Y68.7%
EPS Next 3Y44.23%
EPS Next 5YN/A
Revenue Next Year-17.07%
Revenue Next 2Y-9.27%
Revenue Next 3Y-11.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.57, KREF can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KREF is on the same level as its industry peers.
KREF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.96, the valuation of KREF can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as KREF.
KREF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
KREF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KREF is cheaper than 88.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KREF's earnings are expected to grow with 44.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y68.7%
EPS Next 3Y44.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.99%, KREF is a good candidate for dividend investing.
KREF's Dividend Yield is slightly below the industry average, which is at 12.25.
KREF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.99% |
5.2 History
The dividend of KREF decreases each year by -2.88%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-2.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KREF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-202.99%
EPS Next 2Y68.7%
EPS Next 3Y44.23%
9.46
-0.07 (-0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.63%
Inst Owner Change-3.59%
Ins Owners1.71%
Ins Owner Change3.84%
Market Cap621.33M
Analysts81.82
Price Target11.6 (22.62%)
Short Float %6.49%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.99% |
Yearly Dividend1.49
Dividend Growth(5Y)-2.88%
DP-202.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.95%
Min EPS beat(2)44.18%
Max EPS beat(2)49.72%
EPS beat(4)3
Avg EPS beat(4)-33.31%
Min EPS beat(4)-233.84%
Max EPS beat(4)49.72%
EPS beat(8)6
Avg EPS beat(8)-66.11%
EPS beat(12)8
Avg EPS beat(12)-42%
EPS beat(16)11
Avg EPS beat(16)-38.29%
Revenue beat(2)0
Avg Revenue beat(2)-10.2%
Min Revenue beat(2)-12.76%
Max Revenue beat(2)-7.64%
Revenue beat(4)0
Avg Revenue beat(4)-6.56%
Min Revenue beat(4)-12.76%
Max Revenue beat(4)-1.64%
Revenue beat(8)2
Avg Revenue beat(8)-3.79%
Revenue beat(12)5
Avg Revenue beat(12)44.56%
Revenue beat(16)9
Avg Revenue beat(16)59.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)14.11%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)-5.45%
EPS NY rev (3m)-13.33%
Revenue NQ rev (1m)-2.34%
Revenue NQ rev (3m)-11.67%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 10.96 | ||
| P/S | 1.21 | ||
| P/FCF | 6.11 | ||
| P/OCF | 5.95 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.37
EY3.91%
EPS(NY)0.86
Fwd EY9.12%
FCF(TTM)1.55
FCFY16.37%
OCF(TTM)1.59
OCFY16.81%
SpS7.83
BVpS18.88
TBVpS18.88
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -3.58% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.7% | ||
| FCFM | 19.78% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 48.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 279.45% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | -0.02 |
F-Score5
WACC6.78%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)128.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%97.45%
EPS Next Y152%
EPS Next 2Y68.7%
EPS Next 3Y44.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.32%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-25.38%
Revenue Next Year-17.07%
Revenue Next 2Y-9.27%
Revenue Next 3Y-11.84%
Revenue Next 5YN/A
EBIT growth 1Y-166%
EBIT growth 3Y-36.94%
EBIT growth 5Y-17.51%
EBIT Next Year-35.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.09%
FCF growth 3Y1.66%
FCF growth 5Y7.41%
OCF growth 1Y-30.26%
OCF growth 3Y2.03%
OCF growth 5Y7.65%